Often, it is necessary to ask for financial aid for a business to grow and strengthen. However, many entrepreneurs do not know where and how to resort, after all, there are several models of business loans. In addition, many people also do not know which one best fits their business profile.

Thinking of helping those who need to expand their business, in this post we selected the main types of business loans existing on the market. Know which ones they are and which is the best for your company!

The importance of business loans

In order to make a business grow, it is necessary to make the capital revolve and, many times, the business loan is the best solution for an entrepreneur who is experiencing difficulties when choosing a growth strategy or trying to escape the obstacles encountered along the way.

That is, whether in difficulty or to improve the company’s services and products, a loan is always welcome. Therefore, it is not only in the crisis that you should seek a financial contribution. It is also necessary to invest in technologies and innovations to expand and improve the enterprise.

Be aware, because the employees of an institution also need to receive training and only with investments is it possible to achieve the objectives outlined in the planning.

Next, you will learn about the main loan modalities that will help your business to grow or get out of trouble. Check out!

The main types of business loans

Working Capital Loan

This is usually the type of loan most sought by entrepreneurs. This is because working capital is the money used for the functioning of an institution, that is, for operations carried out on a daily basis.

This type of contribution is widely used to buy goods and supplies, replenish stocks, subsidize administrative expenses and other needs that the company may have.

When looking for this type of loan, it is important to be aware, as there are two forms of release. The first is for fixed investments, an exclusive modality for the purchase of inputs and goods necessary for production in the company.

Contracting the loan

For her, proof of destination is required, that is, it is necessary to buy the material that was informed when contracting the loan. The second way is done in an isolated way, in which case, it is not necessary to prove the destination that the loan will have.

The main characteristics of this modality are:

short-term and short-term financing;

fixed interest rate;

the guarantee is given by a partner.

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Discover actions you need to take to improve financial health The month of January 2020 registered at 65.3% the percentage of families with credit card debts, overdrafts, postdated checks, payroll loans, personal loans, store booklets, car installments and home installments. So it is relevant to learn how to get out of debt using simple and effective methods. A drop from the end of 2019, which registered the figure of 65.6% in December. But, an increase compared to January 2019, when the indicator reached 60.1%.

The data are from the Consumer Debt and Default Survey (Peic), released in February. It is a high number that reveals that the financial health of the Brazilian is in the background in the priorities of everyday life. So if you’re wondering how to get out of debt, keep an eye on these tips and start now to get out of the red:

Organize your budget

Bad debts – those made without any planning – are born of the unknown. If I don’t even know how much is in and out of my checking account, how can I even save any money? Can not. Because if you have a messy family budget, you can’t get out of the red. So it is important that, above all, you have a complete sense of how your financial life is now.

Take a quick look at your statement, it is common for banks to present data regarding your spending, some of which are even divided into what kind of things you spent: pharmacy, supermarket, bar, gym. Set up a spreadsheet to use every month and write down your earnings, expenses and what debts you have. This overview of your financial life will be essential to making the right decisions.

Pay the highest interest debts first

Many people are so mired in debt that they don’t even know where to start. Prefer practicality. Assess what are your most critical debts, those with higher interest rates and great chances of accelerated growth if you remain in default. They are the ones you must pay for first. Try to negotiate with the institution you owe, a sincere and realistic conversation can reach a consensus for both parties, after all, the other side wants to receive what you owe. After settling debts and making your choice of priorities, it’s time to make sure that all deals are paid.

Renegotiate debts

Perhaps you think that if you are in debt it is wrong to take out a personal loan as this is theoretically to acquire another debt. In fact, if the loan is applied for based on serious planning, your situation may start to change. With platforms like Credit Cream Lend you can do everything online and still compare interest rates and installments. Depending on the amount you can request, you can pay all debts in cash and with that you may be able to get good discounts. Your payments will be concentrated in one place and with cheaper interest.

Beware of cutting unnecessary expenses

In this process of getting out of debt, you need to know that some efforts will need to be made. If things are not going well it is time to change, but pay attention not to make any sudden changes. Start to cut unnecessary spending slowly. If your life changes patterns overnight, it is much easier for you to give up after a short time. So be patient with yourself and cut those expenses over a few months. What you can do right away is to renegotiate some plans and try to pay less at all, before cutting them.

Extra income

A little extra money is always welcome, but don’t think it will fall from the sky in your pocket, you need to have a waist game to use your creativity and be able to earn extra money at the end of each month. Use your natural talents to find freelance jobs – the famous beak – or even invest in new businesses that are profitable and need little money to run. Private classes, beauty salon service at home, fitness lunches, personal shopper, dog walker and many other options can help you get your extra income quickly and effectively.

Avoid impulsiveness to get out of debt

Your great challenge in this path is to transform habits that led you to an unbalanced economic life. One of them is spending on impulsivity and this needs to end. Make purchases with awareness and planning, the trend is that over time you will be able to educate your mind.

Improve your Score

The Score is a kind of score in your “good paying resume”. Once you are paying your trades on time, your name will be removed from the defaulting list. Your efforts should be to increase your score in this Positive Register, the best placed ones will be closer to 1000. How to do this? Paying your bills on time, sometimes even anticipating these payments and keeping your data always up to date at the institutions that collect information to feed these scores.

Create Goals

The more you have a plan in mind of what you want to achieve in your future, the easier it is to not get out of line and reach your bigger goals. Create small goals and unlock your list little by little. Define something bigger that you want to do when your financial life is in the throes: take a vacation trip, buy a house, make an exchange, change cars. Until you get there, win smaller goals: be able to save on something, finish paying a bill, earn extra money each month. With something you really want waiting for you on the other side it will be even more thought-provoking to keep your name clean and keep the bills in the blue.

The documents required for an online personal loan are usually the RG (or equivalent document), CPF, proof of residence and income. This list may change slightly depending on where the loan is negotiated with. Companies are going to use these documents to prove the identity of the borrower and his ability to pay the agreed installments.

List of documents required for an online personal loan

There may be some kind of change in the list of documents required by the institutions and in the way they are going to be presented, for example, in person or over the internet. Usually the list with the most requested items is listed by Guiabolso:

RG If you do not have an ID, all banks and finance companies accept the replacement with another official document with photo: CNH (National Driver’s License), passport, work card, such as professional identification cards, those of the National or regional Councils of your job (OAB, CRM). If you are a foreigner you will need the RNE (National Alien Registration).

CPF This cannot be replaced by an equivalent document.

Proof of address A recent electricity, water, gas or telephone bill is used to check where you live alone or with people in your family. Institutions generally consider accounts up to three months ago to be recent. Ideally, they should be in the name of the person who applied for the loan, otherwise, it will be necessary to add a new document to the list: the marriage certificate or the RG itself, all of this to prove the family bond with the spouse or parents.

Proof of income It is more common to verify monthly earnings with a simple bank account statement. A copy of the income tax or work permit is also an option. Other proof of employment may also be accepted, such as employment or social contract of the company (if it is the owner or partner), identification of Individual Microentrepreneur (MEI) or proof of income received as self-employed.

And what do companies do with them?

Usually the documents are used by the company for 3 fundamental reasons:

prove the identity of the person applying for the personal loan

know where you can find the customer in case of a problem

check the economic condition and the real possibility of paying the value of the parcels closed at the time of the order

The deadline for analyzing credit and documents and approving a personal loan application usually takes a few days between the country’s main financial institutions. In addition to these three steps, it is still common to make another type of consultation.

Checking the reputation of the borrower

The list of documents also serves for the company that made the credit offer check on the reputation of the future customer in the market. For this, it can use its own information or surveys from specialized places, such as Serasa and Boa Vista.

The two institutions usually inform the so-called credit score. The higher it is, easier The higher it is, to get personal credit and the better the payment terms and conditions will be.

However, anyone who thinks it is impossible to get a loan even with a low score or a negative name is mistaken. The only difference is that the interest rate should be higher and the payment term may not be that long.

Other precautions before separating the required documents in an online personal loan

The credit offer analysis must also include a comparison between the amount requested and the total returned at the end of the contract. That is why it is very important to simulate the values ​​and make a comparison between the competitors.

By projecting how much the installment will be and for how many months you will have to pay it, it is possible to find out what interest rate will be charged and to know if the institution is being transparent and revealing the Total Effective Cost of the loan or only the rate his nominal.

And comparing competitors makes it easier to find the best price and the most favorable available conditions, even for those who have already taken out a loan. It is always time to negotiate and even ask for the loan portability if a better offer is not covered.

One of the difficulties that entrepreneurs face is getting enough working capital to keep the business running. Have you been through this? So, know that there is a solution and it can be simpler than you might think.

So it’s time to understand how a working capital loan works.

This is a way to generate cash quickly for your company so that all financial commitments are honored. After all, until your business reaches the point of equilibrium, it is natural to go through a few squeezes for lack of money.

So, read on to understand what the working capital loan is, how it works and why it is worth it.

What is a working capital loan?

Working capital is the money you need to use on a daily basis to honor your business commitments. It can be used to pay employees, buy goods or raw materials, pay taxes and even deal with certain unforeseen events that require an extra amount.

The problem is that many companies have not yet reached a financial balance and this makes it difficult to bear all the expenses that arise. After all, in addition to the planned costs, you have to face the unforeseen. That’s where you need to avail of loans.

It is a good thing that there is a type of loan aimed precisely at restoring or increasing working capital. This is the ideal solution to deal with everyday expenses so that your business does not run the risk of weakening.

How does the working capital loan work?

The main detail of this type of loan is that it is only made for legal entities. So, your company needs to be active and properly formalized. When applying for this loan, you will be asked to present certain documents, such as the CPF and the partners’ identity card, CNPJ, the social contract and the income statements of previous years. Depending on the case, you may need to submit some additional documents, right?

Unlike other types of loans, you are not required to say what the purpose of the money you are borrowing is for. However, it is important to have common sense and use this capital correctly and efficiently.

How to use working capital correctly and efficiently?

The purpose of this loan is not to enable investment in the business structure that will only bring returns in the medium and long term. Keep in mind that working capital should be used for everyday business expenses. Therefore, the extra money you raise in this operation will serve to increase working capital and will be used to take care of these various expenses.

For example, the amount borrowed can be used to honor the company’s financial commitments in those less profitable periods of the year, keeping employees’ salaries and payments to suppliers up to date.

In addition, this loan can be useful to help you build up your inventory before some period of more intense movement. You can also take advantage of these resources to buy goods or raw materials with special discounts that suppliers can offer.

Finally, it is clear that this amount will be well used when covering unexpected expenses, such as special marketing campaigns, additional expenses related to hiring new employees or the costs of moving to another location.

Why is the working capital loan worth it?

Since the working capital loan was created with this business need in mind, it is much more interesting than an ordinary loan. Check out some advantages.

Very competitive interest rates

It is possible to hire this type of loan at more interesting rates when you offer some asset as collateral. After all, financing tends to have a high-interest rate because of the risk that the institution runs when giving money.

On the other hand, offering a guarantee reduces the risk for the creditor, who, in turn, is able to charge a more friendly interest rate. So, find out about this possibility when applying for your loan, okay?

Take this opportunity!

Agility in hiring

When you go to an office or bank to apply for a loan, you usually have to deal with the heavy traffic in the city center, lack of parking spaces and the delay in service. Not to mention the time you fail to dedicate to your business.

However, there are institutions that offer working capital loans with incredible agility. If you choose the right company to make your request, you can resolve everything through an online environment. Dealing with this type of subject without leaving home is great, isn’t it?

Ease of dealing with financial problems

Any business is subject to unforeseen circumstances. However, if your company is still new, you may not be able to handle it yet and you will be in a serious squeeze.

If working capital is lacking, difficulties will arise that may cause delays in payments and, as a result, distrust on the part of the market. Therefore, the working capital loan will help keep your business safe.

Shorter deadlines for solving short-term problems

Some types of loans limit installment amounts, so you are forced to pay monthly installments for a very long period. And the more time you spend paying off a loan, the higher your interest expense will be.

In the case of the working capital loan, it was designed precisely to meet the needs of the business in the short term. This means that you do not need to be limited because of a monthly expense that can last for years.

As this article has shown, it is possible to raise capital quickly without having to pay absurd interest. Thus, you can honor your company’s commitments and even invest to increase productivity and, as a result, profit. Therefore, the working capital loan can be your great ally in strengthening your business.

If you are interested in this great solution and want to take some more questions, contact us right now!

The credit card revolving can easily lead the consumer to lose control: a dinner here, a shop there and, when the bill arrives, the scare is certain. Who knew that a little piece of plastic would forever change our relationship with money? It cannot be denied that, when properly used, the credit card makes life easier, it is practical and safe. To escape default, many people end up opting for revolving credit and paying only between the minimum amount and the total bill. Want to better understand how it works and how to calculate the credit card revolving?

How does credit card revolving work?

Each month, you receive the invoice with all detailed expenses and the total amount to be paid. When there is not enough money to settle everything, there is the possibility of paying the minimum amount, at least 15% of the total – up to an amount below the full amount of the invoice. However, make no mistake: despite immediate relief, entering revolving credit is a classic example of card misuse and can make your debt unpayable. In the following month, the operator or bank will charge the amount that was left open, plus interest, fine and late payment. And we are not talking about any addition! To give you an idea, the interest rate on the revolving credit card reached 486.8% earlier this year. The percentage is among the highest in the market, along with interest on overdraft.

How to calculate the card spinning?

With a simple example, it is clear how damaging the use of revolving credit can be to your finances. Before opting for the minimum invoice payment, try to calculate the impact of that choice on your budget. Please note:

The invoice arrives with the amount of $ 900 and the minimum payment is 20% (that is, $ 180);

Automatically, you put $ 720 in the revolving credit;

In the next month, this amount will jump to $ 864 plus fine and late payment interest.

What are the losses of not paying the full invoice?

Just do the math to see that entering the revolving credit card is far from a good deal. The chances of seeing a debt become unpayable are great. Therefore, choosing the minimum payment of the invoice should be your last option. If you see that it will not be possible to pay the card bill, look for other forms of financing. A loan may offer lower interest rates. Another more radical possibility is to seek justice to negotiate the debt. While the lawsuit is being discussed, you cannot be considered in default. However, to avoid all this headache, the ideal is to keep your finances in order and use your credit card consciously. Remember: the limit is not part of your income.

What are the new rules for the use of the rotary?

From April 2017, the use of credit card revolving will have new rules. The consumer can use the revolving credit for only 30 days. In the following month, either you pay the entire invoice or the bank / operator will present a proposal to refinance the outstanding balance. The consumer must pay attention to the rules of the new system because it will be possible to have several installments running in parallel. Ultimately, this practice can replicate the misuse of the rotary for the installments. Now that you know how credit card revolving works, see how to choose the most appropriate card for your profile and keep learning how to have a healthier financial life! Within the current model, there is no set deadline for settlement and it is possible to use the revolving loan indefinitely, which can result in a mountain of interest payable.

If there is one thing that usually takes many people’s sleep away, it is debt. In addition to restricting credit possibilities in the market, they unbalance any financial planning. In order to solve this problem, many people turn to debt refinancing.

If you don’t know how this process works, keep reading this post and learn more about it!

Understand what debt refinancing is

Debt refinancing is a type of credit intended for those who have financial issues. It is a great opportunity to end debts and removes the name of the credit protection agencies.

The big advantage is the possibility of negotiating more affordable values ​​for the discharge, even more if the intention is to undo the payment in cash. If that’s your case, don’t hesitate: ask the financial institution for a good discount.

Whoever prefers to negotiate in installments will have their name removed from the debtors’ records as of the first payment.

Know which debts can be refinanced

Virtually any type of debt can be refinanced. You can request this facility for both consumer debts incurred from making a purchase, as well as credit debts, in the case of those who find it difficult to honor with a loan, financing or card bill.

Individuals and companies may also seek to renegotiate tax debts. Anyone who has issues with the Federal Revenue Service or with Social Security can join the program of regularization of tax debts announced by the federal government at the end of 2016. Whoever owes the States or municipalities needs to look for the incentives offered by these agencies to check the possibility of refinancing.

Learn how to apply for refinancing

To make this request is very simple: just contact the creditor institution and check the conditions offered for the debt to be settled. Often, creditors themselves often seek out debtors in search of a renegotiation, or outsource this activity to another company. This is also a great opportunity to make a deal.

In the case of banks and finance companies, some already offer this type of negotiation online, making life easier for those who do not have time to attend an agency in person.

Here are some tips for requesting debt refinancing

Despite being a great way to regularize the financial situation, there are some precautions that must be observed before applying for debt refinancing. The main one is to make sure that you will be able to honor the new commitment, so as not to turn this opportunity into another headache.

If you decide to pay your debt in installments, the recommendation is that the value of the installments does not exceed 30% of your income. This care is essential to reduce the risks of getting involved in other debts because of refinancing.

With the recent declines in interest rates, the current moment is good for those who want to exchange their debt for a cheaper one. To do this, look for financial institutions that have already readjusted their rates to the new indicators to obtain more affordable financing and settle once and for all their financial issues.

If you have come this far it is because you have a small project in hand or an unexpected expense, if so, we tell you what micro loans are and what advantages and disadvantages it could be to request one of these financial products. Take paper and pen, let’s start!

What are microloans?

Micro loans are financial products through which you can have a not very high amount of money in a short time. What characterizes micro loans?

Amount to request: what is granted in this type of loan is small amounts, which usually have a maximum of 750 dollars. These financial products are not intended to help you undertake a project or reform your home, but to be an option if you need a small amount of money quickly.

Repayment terms: the borrowed money must be repaid in a short time, normally about 30 days.

Quick micro loans are known in English-speaking countries as a payday loan , what we could define as a “payday loan”. This term defines this financial product well since they are unexpected expenses far from “pay day, pay day”.

Advantages and disadvantages of applying for a micro loan

Like any financial product, applying for a micro loan has a series of advantages compared to other possibilities, just like the disadvantages.

Advantages of applying for a micro loan: these are financial products whose process is usually quick and easy so that the applicant can obtain the required amount in the shortest possible time. In addition, there are usually many facilities such as the possibility of managing everything online, so getting a micro loan online will be easy for those who need it.

Disadvantages of applying for a micro loan: the biggest disadvantage is the price, they are usually very expensive financial products for those who request it since the commissions on this type of financial products are usually very high, multiplying the interest rates of personal loans. On the other hand, contracting micro loans negatively affects your future ability to obtain financing with other financial entities (eg when financing a car), since it is a product that is associated with higher risk customer profiles.

The online comparison allows you to examine all the details of personal loans, to find the most convenient and suitable financing for your needs.

Economic crisis and credit crunch make it difficult for most to obtain a loan. In the absence of the guarantees generally required by credit institutions (banks or financial institutions), many consumers prefer to wait to apply. In certain situations, consumer credit is, however, an obligatory choice that cannot be renounced. To identify the personal loan that best meets your needs, it is advisable to first of all put the most convenient loans of the moment in comparison, using the appropriate comparison portals.

The comparison of the best online loans

It must first of all concern the two indicators Tan and Taeg. Both are expressed as a percentage value and indicate respectively the Nominal Annual Rate, that is to say the interest applied to the loan and the Global Effective Annual Rate, also known as the Synthetic Indicator of Overall Cost (ISCC). This second item, unlike the first, indicates the overall amount of the loan, including interest and all the mandatory accessory items (such as, for example, insurance policies taken out to guarantee credit). It is important to always keep this distinction in mind to avoid being influenced by advertisements, which promise “zero rate” loans: in most cases, this wording – deliberately used to appeal to potential applicants – refers only to Tan.

Being adequately informed about the economic conditions of the chosen loan is essential in order to identify a product in line with personal financial possibilities and avoid unpleasant bank insolvency cases.

It is necessary to dwell on the conditions of the loan

some of which may be particularly advantageous for the contractor, such as the disbursement even in the event of bank problems, the possibility of skipping one or more installments, the possibility of making changes on the amount of each installment or on the total duration of the loan.

All these conditions are illustrated precisely in the comparison portals, which offer in this sense a valid and complete aid for the choice of the loan.

The information sheets of the banks themselves, which have more detailed information, are often made available, so that the user can get more information before deciding in which institution to apply for funding.